There are many different options available when applying for a home mortgage. Many people traditionally get full paperwork loans that allow you to show your income, property, and provide the lender with a list of all your creditors.
This is to make sure you have a detailed idea of how you are eligible for a mortgage loan. You can also visit www.comparez.com.au/home-loan-low-doc or similar sites for more information about no doc mortgage loans.
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No documentation loans, as the name suggests, meant that the borrower did not have to prove his or her income in the application. People who were self-employed or contractors used these loans quite often because they usually found it difficult to collect all the necessary documents for the loans.
Such loans use the credit rating of the borrower to assess their eligibility for the loan first and foremost. Such versatility meant that many self-employed people were able to gain authorization for low doc loans.
As mentioned earlier, the credit rating of the borrower is the most important factors considered by lenders when approving such loans. The lenders of doc mortgage must make sure the borrower has no prior default on their record.
We will also ensure that their previous loan payments are made on time by the borrower. The factor regarded by many lenders when looking at these loans is the debt-to-income ratio of the borrower. That ratio helps to assess the willingness of the borrower to repay the loan.